Productivity Commission Vulnerable Supply Chains

The interim report prepared by the Productivity Commission released on 26 March report considers many issues concerning the vulnerability of supply chains however falls short of comprehensively identifying and considering sea transport vulnerabilities as part of the supply chain.

This submission addresses several specific issues contained within the report and canvasses the omission of the vector of the ships themselves as a key supply chain vulnerability.

In summary:

• Australia is exposed in terms of ensuring that adequate ships would be available to the nation should the global market fail.
• Even when markets are functioning, total reliance on foreign interests can leave Australia without adequate levels of service.
• Australia narrowly avoided catastrophic failure of maritime supply chains during the pandemic because the global shipping industry (governments and businesses) were unable to manage their obligations due to border closures and the disruption of international shipping norms. The pandemic is not over, these risks still exist.